Quest Diagnostics Incorporated — Earnings Quality Grade F
DGX · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 47 days, change -2 days YoY
AR growth 8.0% vs revenue growth 11.8%
Revenue 11.8%, CFFO 41.4%. Cash follows revenue
Expense Quality
Inventory 0.5% vs COGS 11.2%. Normal
CapEx growth 24.0% is >2x revenue growth 11.8%
SG&A/Gross Profit = 53.7%. Normal
Gross margin 33.2%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.90. Profits backed by cash
FCF $1.4B, FCF/NI = 1.37
Accruals ratio = -5.5%. Low accruals
Cash $0.4B covers only 6% of debt $6.6B
Balance Sheet Health
Goodwill+Intangibles $10.6B = 148% of equity. Over 50%
Debt/EBITDA = 3.0x. Healthy
Other assets 5.9% vs revenue 11.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.67 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09